Technical Update - Uptrend in metals could continue: Gold, Silver, Platinum and Copper Technical Update - Uptrend in metals could continue: Gold, Silver, Platinum and Copper Technical Update - Uptrend in metals could continue: Gold, Silver, Platinum and Copper

Technical Update - Uptrend in metals could continue: Gold, Silver, Platinum and Copper

Commodities 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

  • Gold uptrend is weakening but there could still be further upside potential to around 2,490-2,640
  • Silver bullish trend could continue to 34-36 area
  • Platinum is extremely volatile but has no strong resistance until around 1,130
  • Copper uptrend stretched. Expect minor correction. Indicators are pointing to higher levels towards 570-576
  • Be very careful if opening new long positions. Trends can suddenly reverse

Gold (XAUUSD) spiked yesterday to an all-time high and an all-time high close. RSI is indicating divergence, suggesting a correction. If a correction occurs, it could be quite limited, possibly down to 2,343, maybe even less.

There could be further upside despite this RSI divergence. The trend is bullish and a push to the 1.382 projection at 2,490 is in the cards. However, a bullish move to the 1.618 projection at 2,527 or even the 1.764 projection at 2,550 should not be ruled out.

On the monthly medium- to longer-term chart, gold has reached the 0.786 extension of the 2016 to 2022 bullish trend and correction (red Fibonacci levels).

The 1.764 projection of the 2020-2022 correction (blue Fibonacci levels) shows there is still room up to the 2.00 projection of that correction at 2,535, maybe even to the 1.00 extension at 2,643 (vertical arrows).

To demolish and reverse this bullish picture, a daily close below 2,277 is required. A close below 2,330 will most likely be the first indication of this reversal scenario to play out.

Source all charts and data: Saxo Group

Silver (XAGUSD) is in a strong bullish trend. Despite being a bit stretched, there is no RSI divergence, indicating silver is likely to push higher, quite possibly to strong resistance at around 34.40–36.40 (see weekly chart).

The 1.382 Fibonacci projection of the 2021-2022 correction is right in the middle of that area at 34.90.

A minor correction should not be ruled out, possibly down to around 30, but for silver to demolish and reverse the bullish trend, a daily close below 26 is required.

Platinum (XPTUSD) reached the 1.764 projection at 1,092 before being hit by a sell-off. However, RSI is in positive sentiment with no divergence, indicating likely higher platinum prices. There is no strong resistance until around 1,130. A break above this level can give energy to resistance at around 1,180. The current correction could dip down to around 1,021–1,015 before resuming the uptrend. A daily close below 1,000 would demolish the short-term bullish picture

Copper uptrend is a bit stretched as illustrated by the RSI divergence and a correction could occur. A correction that could take copper down to 475–468.

However, there is no strong overhead resistance since copper is trading at all-time highs, but if we are using Fibonacci projections, we can estimate some potential price targets if this bullish trend continues. The 1.382 projection of the massive sell-off in Q2-Q3 2022 indicates a possible bullish move to 576.80, which is close to the 2.618 projection of the Q1 2023 to Q4 2023 correction at 570.

A daily close below 446 will demolish and reverse this bullish picture both short and medium-term.

Disclaimer

The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.